Category

Industrials

Daily Brief Industrials: Jiangxi Special Electric Motor A, Mitsui & Co Ltd, Halcyon Agri, Adani Ports & Special Economic Zone and more

By | Daily Briefs, Industrials

In today’s briefing:

  • CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform
  • Mitsui & Co (8031) Q3 – Big Profit, New Bigger Buyback, Some Index Selling; and Competition
  • Weekly Deals Digest (05 Feb) – Pertamina Geothermal, Hesai, Halcyon, Toshiba, Pushpay, O2Micro
  • Morning Views Asia: Adani Ports & Special Economic Zone, China Hongqiao

CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform

By Brian Freitas

  • Three quarters of the way through the review period for the June rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 9 June.
  • There is a big sector skew in the potential changes. We estimate a one-way turnover of 11.47% at the June rebalance resulting in a one-way trade of CNY 10.11bn.
  • The potential adds have outperformed the potential deletes and the CSI500 Index over the last few weeks. There could be more outperformance till nearer the end of the review period.

Mitsui & Co (8031) Q3 – Big Profit, New Bigger Buyback, Some Index Selling; and Competition

By Travis Lundy

  • Mitsui & Co Ltd (8031 JP) reported Q3 earnings Friday afternoon during the market session. Like at Q2, they upped their fiscal-year forecast to well above Street consensus.
  • Also like Q2, they announced a buyback – this one an extension in time, shares, and money on the one already in place, raising the total Core CashFlow Payout Ratio.
  • This creates interesting index flows over the next several months, and other trading cos have live buybacks too.

Weekly Deals Digest (05 Feb) – Pertamina Geothermal, Hesai, Halcyon, Toshiba, Pushpay, O2Micro

By Arun George


Morning Views Asia: Adani Ports & Special Economic Zone, China Hongqiao

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


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Daily Brief Industrials: Jiangxi Special Electric Motor A, Mitsui & Co Ltd, Halcyon Agri, Adani Ports & Special Economic Zone and more

By | Daily Briefs, Industrials

In today’s briefing:

  • CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform
  • Mitsui & Co (8031) Q3 – Big Profit, New Bigger Buyback, Some Index Selling; and Competition
  • Weekly Deals Digest (05 Feb) – Pertamina Geothermal, Hesai, Halcyon, Toshiba, Pushpay, O2Micro
  • Morning Views Asia: Adani Ports & Special Economic Zone, China Hongqiao

CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform

By Brian Freitas

  • Three quarters of the way through the review period for the June rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 9 June.
  • There is a big sector skew in the potential changes. We estimate a one-way turnover of 11.47% at the June rebalance resulting in a one-way trade of CNY 10.11bn.
  • The potential adds have outperformed the potential deletes and the CSI500 Index over the last few weeks. There could be more outperformance till nearer the end of the review period.

Mitsui & Co (8031) Q3 – Big Profit, New Bigger Buyback, Some Index Selling; and Competition

By Travis Lundy

  • Mitsui & Co Ltd (8031 JP) reported Q3 earnings Friday afternoon during the market session. Like at Q2, they upped their fiscal-year forecast to well above Street consensus.
  • Also like Q2, they announced a buyback – this one an extension in time, shares, and money on the one already in place, raising the total Core CashFlow Payout Ratio.
  • This creates interesting index flows over the next several months, and other trading cos have live buybacks too.

Weekly Deals Digest (05 Feb) – Pertamina Geothermal, Hesai, Halcyon, Toshiba, Pushpay, O2Micro

By Arun George


Morning Views Asia: Adani Ports & Special Economic Zone, China Hongqiao

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


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  • ✓ Events & Webinars

Daily Brief Industrials: Halcyon Agri, Adani Enterprises, Sembcorp Marine, Caterpillar Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Halcyon Agri: MGO Triggered. Currency Translation Cuts Offer Price
  • ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanematsu Elect/Sustech, Toshiba, Pushpay, Sembcorp, O2Micro
  • Last Week in SPACE: Adani Group, Bendigo/Bank of Queensland, Renault/Nissan, Keisei/Oriental Land
  • Caterpillar Inc: New Excavator Launch & Other Developments

Halcyon Agri: MGO Triggered. Currency Translation Cuts Offer Price

By David Blennerhassett

  • As expected, all conditions to the Sinochem/China Hainan Rubber (601118 CH) SPA have now been satisfied, triggering a mandatory Offer for Halcyon Agri (HACL SP), conditional on a 50% tendering.
  • Hainan Rubber holds 36%.  Sinochem has provided an undertaking notto tender its remaining 29.2% stake. Hainan needs 14% out of 34.8% available – or ~40% to tender. 
  • The takeaway disappointment is the Offer Price of S$0.413/share, down from S$0.435 at the time of the initial announcement last November, due to SGD weakness. 

ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, Indonesia kicked-off bookbuild for what is likely to be one of its largest IPOs this year.
  • On the placement front, Adani’s FPO continued to keep everyone busy with its twists and turns. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanematsu Elect/Sustech, Toshiba, Pushpay, Sembcorp, O2Micro

By David Blennerhassett


Last Week in SPACE: Adani Group, Bendigo/Bank of Queensland, Renault/Nissan, Keisei/Oriental Land

By David Blennerhassett


Caterpillar Inc: New Excavator Launch & Other Developments

By Baptista Research

  • Caterpillar delivered a mixed quarterly result as its revenues surpassed Wall Street expectations on account of a healthy demand over many end markets for the company’s products and services.
  • Sales rose better than expected, and the adjusted operating profit margins also increased but the company failed to meet the earnings expectations of analysts.
  • Despite the challenges of the supply chain, Caterpillar generated robust ME&T free cash flow and achieved double-digit top-line growth.

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Daily Brief Industrials: Halcyon Agri, Adani Enterprises, Sembcorp Marine, Caterpillar Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Halcyon Agri: MGO Triggered. Currency Translation Cuts Offer Price
  • ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanematsu Elect/Sustech, Toshiba, Pushpay, Sembcorp, O2Micro
  • Last Week in SPACE: Adani Group, Bendigo/Bank of Queensland, Renault/Nissan, Keisei/Oriental Land
  • Caterpillar Inc: New Excavator Launch & Other Developments

Halcyon Agri: MGO Triggered. Currency Translation Cuts Offer Price

By David Blennerhassett

  • As expected, all conditions to the Sinochem/China Hainan Rubber (601118 CH) SPA have now been satisfied, triggering a mandatory Offer for Halcyon Agri (HACL SP), conditional on a 50% tendering.
  • Hainan Rubber holds 36%.  Sinochem has provided an undertaking notto tender its remaining 29.2% stake. Hainan needs 14% out of 34.8% available – or ~40% to tender. 
  • The takeaway disappointment is the Offer Price of S$0.413/share, down from S$0.435 at the time of the initial announcement last November, due to SGD weakness. 

ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, Indonesia kicked-off bookbuild for what is likely to be one of its largest IPOs this year.
  • On the placement front, Adani’s FPO continued to keep everyone busy with its twists and turns. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanematsu Elect/Sustech, Toshiba, Pushpay, Sembcorp, O2Micro

By David Blennerhassett


Last Week in SPACE: Adani Group, Bendigo/Bank of Queensland, Renault/Nissan, Keisei/Oriental Land

By David Blennerhassett


Caterpillar Inc: New Excavator Launch & Other Developments

By Baptista Research

  • Caterpillar delivered a mixed quarterly result as its revenues surpassed Wall Street expectations on account of a healthy demand over many end markets for the company’s products and services.
  • Sales rose better than expected, and the adjusted operating profit margins also increased but the company failed to meet the earnings expectations of analysts.
  • Despite the challenges of the supply chain, Caterpillar generated robust ME&T free cash flow and achieved double-digit top-line growth.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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Daily Brief Industrials: Halcyon Agri, Jeju Air, Somfy SA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Halcyon Agri (HACL SP): Conditions Precedent Fulfilled, MGO at S$0.413
  • Jeju Air: A Big Beneficiary of Travel Resurgence in Asia + A Likely Inclusion in KOSPI 200 in 2023
  • Despature Family/​Somfy: Squeeze-Out, Delisting

Halcyon Agri (HACL SP): Conditions Precedent Fulfilled, MGO at S$0.413

By Arun George

  • The conditions precedent for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is fulfilled. 
  • This will trigger an MGO at US$0.315 or S$0.413. On the assumption that the offer document is despatched by 17 February, the earliest close of the offer is 17 March.
  • The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities’ acceptance rate. We think that this is achievable as the offer is attractive. 

Jeju Air: A Big Beneficiary of Travel Resurgence in Asia + A Likely Inclusion in KOSPI 200 in 2023

By Douglas Kim

  • We believe that Jeju Air is in a sweet spot right now. Jeju Air is one of the major beneficiaries of the travel resurgence in Asia.
  • Jeju Air is a potential inclusion candidate in the KOSPI 200 index in 2023. There are 42 companies in KOSPI 200 which have lower market cap than Jeju Air. 
  • Outbound travel from Korea recovered strongly with 6.6 million outbound tourists from South Korea in 2022, up 436% YoY. However, this is still 77% lower than the figure in 2019. 

Despature Family/​Somfy: Squeeze-Out, Delisting

By Jesus Rodriguez Aguilar

  • Shareholders caved in, the Despatures now hold 94.38% of SOMFY’s share capital and 96.31% of voting rights. They asked the AMF for the launch of a squeeze‐out procedure (9 February).
  • SOMFY will be delisted from Euronext Paris on 9 February. Following the squeeze-out, SOMFY intends to distribute an extraordinary dividend up to €620 million 
  • The total cost for the family is c. €1,285 million (plus investment banking and legal fees). Nearly half of that will be covered by a €620 million extraordinary dividend. Cool.

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Daily Brief Industrials: Halcyon Agri, Jeju Air, Somfy SA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Halcyon Agri (HACL SP): Conditions Precedent Fulfilled, MGO at S$0.413
  • Jeju Air: A Big Beneficiary of Travel Resurgence in Asia + A Likely Inclusion in KOSPI 200 in 2023
  • Despature Family/​Somfy: Squeeze-Out, Delisting

Halcyon Agri (HACL SP): Conditions Precedent Fulfilled, MGO at S$0.413

By Arun George

  • The conditions precedent for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is fulfilled. 
  • This will trigger an MGO at US$0.315 or S$0.413. On the assumption that the offer document is despatched by 17 February, the earliest close of the offer is 17 March.
  • The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities’ acceptance rate. We think that this is achievable as the offer is attractive. 

Jeju Air: A Big Beneficiary of Travel Resurgence in Asia + A Likely Inclusion in KOSPI 200 in 2023

By Douglas Kim

  • We believe that Jeju Air is in a sweet spot right now. Jeju Air is one of the major beneficiaries of the travel resurgence in Asia.
  • Jeju Air is a potential inclusion candidate in the KOSPI 200 index in 2023. There are 42 companies in KOSPI 200 which have lower market cap than Jeju Air. 
  • Outbound travel from Korea recovered strongly with 6.6 million outbound tourists from South Korea in 2022, up 436% YoY. However, this is still 77% lower than the figure in 2019. 

Despature Family/​Somfy: Squeeze-Out, Delisting

By Jesus Rodriguez Aguilar

  • Shareholders caved in, the Despatures now hold 94.38% of SOMFY’s share capital and 96.31% of voting rights. They asked the AMF for the launch of a squeeze‐out procedure (9 February).
  • SOMFY will be delisted from Euronext Paris on 9 February. Following the squeeze-out, SOMFY intends to distribute an extraordinary dividend up to €620 million 
  • The total cost for the family is c. €1,285 million (plus investment banking and legal fees). Nearly half of that will be covered by a €620 million extraordinary dividend. Cool.

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  • ✓ Unlimited Research Summaries
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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Industrials: Techno Associe, Nissin Electric, Keisei Electric Railway Co, Kyocera Corp, Praj Industries and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share – Insulting Explanation. Deserves More.
  • Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share – ATH But Still Too Low
  • Keisei Electric: Needs Activists to Push the Market
  • Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric
  • Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric
  • Kyocera (6971 JP): Massive Downward Revision
  • Praj Industries: Today’s Unimaginable Is Tomorrows Conventional Wisdom

Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share – Insulting Explanation. Deserves More.

By Travis Lundy

  • Sumitomo Electric Industries (5802 JP) is taking over to subs through tender offers. Both are light. Both this one for Techno Associe (8249 JP) and the one for Nissin Electric.
  • Both deals are light -slightly offensive, but in different ways. The Board decisions are more offensive than the actual prices, but it’s Sumi Elec buying, so those are offensive too.
  • There’s a history here. Sumi Elec went to 51% at an offensively low price (EV/EBITDA below zero) in 2019. But this is probably a done deal anyway.

Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share – ATH But Still Too Low

By Travis Lundy

  • Sumitomo Electric Industries (5802 JP) has announced a takeover of two of its subsidiaries today. The larger one is Nissin Electric (6641 JP)
  • This deal, done for governance purposes, hits an all-time high price. But, like others, it ignores synergies in pricing, has an inadequate premium, and process is just bad.
  • But given the shareholder structure, this is highly likely to sail through un-molested. 

Keisei Electric: Needs Activists to Push the Market

By Oshadhi Kumarasiri

  • We think there’s something fundamentally wrong with Keisei Electric Railway Co (9009 JP)’s current valuation.
  • Its core business with an estimated fair value of ¥720bn, currently has an implied valuation of negative ¥942bn (stub value).
  • If investors can convince the management to dispose its stake in Oriental Land (4661 JP), we think there’s more than a 200% upside to Keisei Electric’s valuation.

Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric

By Arun George

  • Nissin Electric (6641 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,700 per share, an 22.7% premium to the undisturbed price (2 February).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial shareholders. This suggests a done deal. 

Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric

By Arun George

  • Techno Associe (8249 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,695 per share, an 36.9% premium to the undisturbed price (2 February).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February to 22 March.

Kyocera (6971 JP): Massive Downward Revision

By Scott Foster

  • Kyocera cut FY Mar-23 operating profit guidance by more than 30% while leaving sales guidance unchanged. Draw your own conclusions about the reliability of company forecasts.
  • Sales began to decline in 3Q and the rate of decline is likely to increase in 4Q. There is a large inventory overhang.
  • The shares dropped 3% today. Wait for capitulation as the reality of recession sinks in.

Praj Industries: Today’s Unimaginable Is Tomorrows Conventional Wisdom

By Nurture Capital Advisory

  • Robust medium-term earnings growth, softness in commodities to ease margin pressure.
  • Beneficiary of new energy capex, likely blending of Compressed Biogas with CNG furthers capex outlook.
  • Stock has corrected 45% from peak, valuations turn more reasonable.

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Daily Brief Industrials: Techno Associe, Nissin Electric, Keisei Electric Railway Co, Kyocera Corp, Praj Industries and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share – Insulting Explanation. Deserves More.
  • Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share – ATH But Still Too Low
  • Keisei Electric: Needs Activists to Push the Market
  • Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric
  • Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric
  • Kyocera (6971 JP): Massive Downward Revision
  • Praj Industries: Today’s Unimaginable Is Tomorrows Conventional Wisdom

Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share – Insulting Explanation. Deserves More.

By Travis Lundy

  • Sumitomo Electric Industries (5802 JP) is taking over to subs through tender offers. Both are light. Both this one for Techno Associe (8249 JP) and the one for Nissin Electric.
  • Both deals are light -slightly offensive, but in different ways. The Board decisions are more offensive than the actual prices, but it’s Sumi Elec buying, so those are offensive too.
  • There’s a history here. Sumi Elec went to 51% at an offensively low price (EV/EBITDA below zero) in 2019. But this is probably a done deal anyway.

Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share – ATH But Still Too Low

By Travis Lundy

  • Sumitomo Electric Industries (5802 JP) has announced a takeover of two of its subsidiaries today. The larger one is Nissin Electric (6641 JP)
  • This deal, done for governance purposes, hits an all-time high price. But, like others, it ignores synergies in pricing, has an inadequate premium, and process is just bad.
  • But given the shareholder structure, this is highly likely to sail through un-molested. 

Keisei Electric: Needs Activists to Push the Market

By Oshadhi Kumarasiri

  • We think there’s something fundamentally wrong with Keisei Electric Railway Co (9009 JP)’s current valuation.
  • Its core business with an estimated fair value of ¥720bn, currently has an implied valuation of negative ¥942bn (stub value).
  • If investors can convince the management to dispose its stake in Oriental Land (4661 JP), we think there’s more than a 200% upside to Keisei Electric’s valuation.

Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric

By Arun George

  • Nissin Electric (6641 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,700 per share, an 22.7% premium to the undisturbed price (2 February).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial shareholders. This suggests a done deal. 

Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric

By Arun George

  • Techno Associe (8249 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,695 per share, an 36.9% premium to the undisturbed price (2 February).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February to 22 March.

Kyocera (6971 JP): Massive Downward Revision

By Scott Foster

  • Kyocera cut FY Mar-23 operating profit guidance by more than 30% while leaving sales guidance unchanged. Draw your own conclusions about the reliability of company forecasts.
  • Sales began to decline in 3Q and the rate of decline is likely to increase in 4Q. There is a large inventory overhang.
  • The shares dropped 3% today. Wait for capitulation as the reality of recession sinks in.

Praj Industries: Today’s Unimaginable Is Tomorrows Conventional Wisdom

By Nurture Capital Advisory

  • Robust medium-term earnings growth, softness in commodities to ease margin pressure.
  • Beneficiary of new energy capex, likely blending of Compressed Biogas with CNG furthers capex outlook.
  • Stock has corrected 45% from peak, valuations turn more reasonable.

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Industrials: Sembcorp Marine, Cosco Shipping Energy Transportation Co. Ltd. (H), Adani Ports & Special Economic Zone, Siemens AG, Boeing Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine & Keppel O&M: STI Inclusion Possibility & Other Index Flow
  • COSCO Shipping Energy (1138 HK): Beware of Momentum Peaking
  • Morning Views Asia: Adani Ports & Special Economic Zone
  • Siemens: Converting Backlog to Sales – FY2023 Should Be a Very Strong Year
  • Boeing Co: New Military Aircraft Launch & Other Developments

Sembcorp Marine & Keppel O&M: STI Inclusion Possibility & Other Index Flow

By Brian Freitas


COSCO Shipping Energy (1138 HK): Beware of Momentum Peaking

By Osbert Tang, CFA

  • Cosco Shipping Energy Transportation (1138 HK) rallied 12.5% in the last two trading days after issuing a FY22 positive profit alert, but we are concerned that momentum is peaking. 
  • Its P/B of 0.92x is 4SD above average since 2016, more than sufficient to reflect rebound in FY23-24F profitability. Meanwhile, VLCC rate has plunged 80% in the last 3 months.  
  • We believe CSET is already midway in the upcycle which normally lasts for 2-3 years. With high 4Q22 profit difficult to sustain for long, there is downside risk on earnings.  

Morning Views Asia: Adani Ports & Special Economic Zone

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Siemens: Converting Backlog to Sales – FY2023 Should Be a Very Strong Year

By Alexis Dwek

  • The investment case revolves around Siemens’ high backlog converting to sales in FY 2023. 
  • Demand is driven by the need of customers to digitalize their businesses and reach their sustainability goals, which Siemens can provide given its optimized portfolio
  • As per the CEO, Siemens keeps reinventing itself from a position of strength by anticipating new trends and developing new technologies

Boeing Co: New Military Aircraft Launch & Other Developments

By Baptista Research

  • Boeing had another weak quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings.
  • The company managed over $3 billion in free cash flow driven by the progress in its performance and continued demand.
  • Boeing has a strong pipeline of development programs, and it has been preparing itself for the next generation of products.

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  • ✓ Events & Webinars

Daily Brief Industrials: Sembcorp Marine, Cosco Shipping Energy Transportation Co. Ltd. (H), Adani Ports & Special Economic Zone, Siemens AG, Boeing Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine & Keppel O&M: STI Inclusion Possibility & Other Index Flow
  • COSCO Shipping Energy (1138 HK): Beware of Momentum Peaking
  • Morning Views Asia: Adani Ports & Special Economic Zone
  • Siemens: Converting Backlog to Sales – FY2023 Should Be a Very Strong Year
  • Boeing Co: New Military Aircraft Launch & Other Developments

Sembcorp Marine & Keppel O&M: STI Inclusion Possibility & Other Index Flow

By Brian Freitas


COSCO Shipping Energy (1138 HK): Beware of Momentum Peaking

By Osbert Tang, CFA

  • Cosco Shipping Energy Transportation (1138 HK) rallied 12.5% in the last two trading days after issuing a FY22 positive profit alert, but we are concerned that momentum is peaking. 
  • Its P/B of 0.92x is 4SD above average since 2016, more than sufficient to reflect rebound in FY23-24F profitability. Meanwhile, VLCC rate has plunged 80% in the last 3 months.  
  • We believe CSET is already midway in the upcycle which normally lasts for 2-3 years. With high 4Q22 profit difficult to sustain for long, there is downside risk on earnings.  

Morning Views Asia: Adani Ports & Special Economic Zone

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Siemens: Converting Backlog to Sales – FY2023 Should Be a Very Strong Year

By Alexis Dwek

  • The investment case revolves around Siemens’ high backlog converting to sales in FY 2023. 
  • Demand is driven by the need of customers to digitalize their businesses and reach their sustainability goals, which Siemens can provide given its optimized portfolio
  • As per the CEO, Siemens keeps reinventing itself from a position of strength by anticipating new trends and developing new technologies

Boeing Co: New Military Aircraft Launch & Other Developments

By Baptista Research

  • Boeing had another weak quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings.
  • The company managed over $3 billion in free cash flow driven by the progress in its performance and continued demand.
  • Boeing has a strong pipeline of development programs, and it has been preparing itself for the next generation of products.

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